Consider a Consumer Who Purchases Two Goods, X and Y

question 11

Multiple Choice

Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will

• A)cause the consumer to buy more of good Y and less of good X.
• B)cause the consumer to buy more of good X and less of good Y.
• C)not affect the amount of goods X and Y that the consumer buys.
• D)result in an upward-sloping demand for good Y if the substitution effect is positive.

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Definitions:

Jointly Exhaustive

A characteristic of a set of categories or propositions that together cover all possible scenarios or outcomes, leaving no options unaccounted for.

Jointly Exhaustive

A condition in which a set of options or propositions covers all possible outcomes or cases, leaving no scenario unaddressed.

Consistent Principle

A rule or guideline in logic or mathematics that does not lead to a contradiction when applied.

Jointly Exhaustive

A condition in which all possible cases or outcomes are covered or accounted for by a set of categories or propositions.